A wide variety of electronic commerce “eCommerce) payment transactions are performed via the Internet. In a typical eCommerce transaction, a consumer utilizes a personal computer to access one or more merchant Web sites, and the consumer selects products to be purchased. During a checkout proceeding, the consumer provides payment account information, such as a credit card or debit card number, to a merchant system. The merchant system then generates a payment authorization request utilizing the payment account information, and the payment authorization request is communicated to a payment account issuer for processing.
Conventional eCommerce payment transactions are considered “card not present” (“CNP”) transactions because a physical payment device (e.g., a payment card) has not been read by the merchant. Accordingly, a higher level of risk may be attributed to the transactions, thereby leading to increased pricing and/or liability concerns. However, with the increasing use of new payment devices, such as transaction-enabled mobile devices, there is an opportunity for improved system and methods that facilitate card present eCommerce transactions.